Lex Claims, LLC v. Garcia-Padilla, No. 17-1241 (1st Cir. 2017)Annotate this Case
This was the First Circuit’s second set of appeals involving the automatic stay provision of the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA). Here, the parties disputed whether four claims included in Plaintiffs’ second amended complaint were within the scope of PROMESA’s temporary stay. Plaintiffs conceded that the majority of their claims were subject to the stay, but the district court allowed the suit to proceed on the four counts at issue, all of which were purportedly brought under various provisions of PROMESA. On appeal, Appellants challenged this ruling. The First Circuit reversed the district court’s holding that the PROMESA stay did not apply to Plaintiffs’ first, second, third, and twelfth causes of action, as the claims at issue plainly constituted attempts to exercise control over revenues of the Commonwealth of Puerto Rico.